Mulberry has decisively rejected a heightened takeover bid from Frasers Group worth £111 million, highlighting rising tensions within its shareholder base.
- The luxury retailer’s major shareholder, Challice, expressed a distinct lack of interest in selling its shares or supporting Frasers’ proposal.
- Mulberry’s board considers the offer unsustainable, opting to focus on strengthening its business performance.
- Frasers had increased its offer from an initial £83 million to £111 million, with a deadline looming.
- Mulberry is currently focused on internal growth strategies, including a new CEO appointment and capital investments.
Mulberry, known for its luxury handbags, has made a firm decision to decline an enhanced takeover proposal from Frasers Group, valuing the deal at £111 million. This move underscores escalating tensions between Mulberry’s significant shareholder, Challice, and Frasers, the owner of Flannels.
Challice, which holds a major stake in Mulberry, explicitly stated its disinterest in selling its shares to Frasers or providing any support for the takeover bid. This clear stance by Challice heavily influenced Mulberry’s decision to reject the offer.
In a recent statement, Mulberry’s board, after thorough consideration with its advisers, deemed the offer untenable. The board unanimously agreed that the company’s primary focus should be on boosting its commercial performance rather than pursuing the proposed deal.
Earlier this month, Frasers raised its bid to 150p per share, improving on its original £83 million proposal. This revised approach came amidst a backdrop of strategic planning within Mulberry, as the company strives to enhance its market positioning.
Additionally, Mulberry reiterated its previous commitment to future growth, highlighting initiatives such as appointing a new CEO and securing a fresh debt facility. Such steps are designed to provide a robust foundation for the company’s long-term expansion plans.
Mulberry remains steadfast in its growth strategy, rejecting acquisition overtures to concentrate on internal development.
